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Trump and Warren Unite to Abolish U.S. Debt Ceiling

Congress is under pressure to endorse a bipartisan plan to eliminate the debt ceiling before an early August default.

Sen. Elizabeth Warren, D-Mass., conducts a special forum on the rising cost of education at the Dirksen Senate Office Building on May 14, 2025 in Washington, D.C.
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Debt Ceiling Illustration
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Overview

  • President Trump used Truth Social to propose abolishing the debt ceiling entirely and urged Republicans and Democrats to pass legislation with Sen. Elizabeth Warren.
  • Warren endorsed scrapping the borrowing cap on X but cautioned against boosting it by $4 trillion to finance additional tax breaks for billionaires.
  • Treasury Secretary Scott Bessent warned the government will hit its statutory borrowing limit in August and may need extraordinary measures to avoid a default.
  • Lawmakers are debating a broader package that would raise the debt ceiling by roughly $4 trillion for Trump’s tax cuts and border security bill, prompting opposition from GOP deficit hawks.
  • Credit-rating agencies have downgraded U.S. debt over recurring ceiling standoffs, intensifying concerns about the economic risks of repeated political showdowns.